Julius Baer said the strong Swiss franc against major currencies such as the US dollar continued to eat into managed assets, with cost-cutting measures aimed at cushioning the currency blow not set to take effect until later this year.
Net new money inflows were on an annualized basis well into the Group’s 4-6% medium-term target range.
According to Swiss private banking group, new funds came mainly from growth markets–which include Asia–as opposed to western Europe, where Swiss banks are losing their stronghold, due in large part to Switzerland watered down bank secrecy laws.
The gross margin in the first four months of the year improved from the levels achieved in the second half of last year and was just above the gross margin achieved for the full year 2010.
Total client assets increased to CHF271bn.
Last month Julius Baer agreed to pay EUR50m to Germany regulators to end a probe into hidden offshore accounts.
